PERTH (miningweekly.com) – ASX-listed Kingston Resources will raise more than A$8-million through a share placement and entitlement offer to advance exploration at its Misima gold project, in Western Australia.

The company on Friday announced that it had received binding commitments to raise an initial A$4.3-million through a share placement to institutional and sophisticated investors.

The company will place some 276-million shares, at a price of 1.6c each, under its existing placement capacity.

Kingston told shareholders that German investment company Delphi Unternehmensberatung and Australian investment group Winchester Investments had both taken substantial stakes in the company, with Winchester now holding an approximate 10% interest in Kingston.

Kingston MD Andrew Corbett has welcomed the new shareholders, saying that Kingston was encouraged by their support for Misima, and their interest in developing the project into a long-term, viable mining operation.

“Misima is at an exciting point in its development as we drill exploration targets outside of the existing resource that have been identified through our structural and geochemical work. These areas have not been the focus of any activity for almost two decades and are very prospective targets for Kingston.”

In addition to the share placement, Kingston will also undertake an entitlement offer, allowing eligible shareholders to subscribe for one new share for every six shares held, also at an issue price of 1.6c each.

It is hoped that the entitlement offer would raise a further A$4-million, with a maximum of 251.46-million shares on offer.

Corbett said on Friday that over the next two quarters, Kingston was looking to ramp up regional drilling, targeting satellite deposits at Misima, while activities at the Livingstone gold project, also in Western Australia, would also be increased.